Allied Home Warranty was a Texas-based company that offered repair and replacement services for home systems and appliances through home warranty plans. The company sold service plans to homeowners, real estate agents, and home sellers but went out of business in 2018 soon after being acquired by OneGuard Home Warranty.
In this review, we will offer tips on shopping for home warranty coverage and suggest other recommended providers for your coverage needs.
Allied Home Warranty Reviews
According to the Better Business Bureau (BBB), Allied had an A+ rating before closing down. The company prioritized their local expertise since they only operated in Texas, however, there were some policyholders who were unhappy with their service.
Here’s what one customer had to say:
“This home warranty company is a joke! Horrible customer service, they send random contractors to your home for service calls with substandard equipment and then when you call to complain, there is no attempt to even apologize for the service provided and yes you still have to pay. Want to speak to a manager or supervisor? Good luck they will all be busy.” — Kourtney S, 1/04/2018
Top-Rated Alternatives to Allied Home Warranty
Even though Allied is no longer available, other top-rated home warranty providers offer comprehensive coverage at affordable prices. Here’s a list of three reliable providers to explore instead.
American Home Shield offers comprehensive home warranty plans with generous coverage limits of up to $4,000 for appliances and $5,000 for home systems. Plans also include coverage for undetectable pre-existing conditions, which other companies typically exclude from coverage. This makes American Home Shield a good choice for homeowners with older systems and appliances.
Choice Home Warranty provides plans priced under $70 with standard $3,000 limits for most covered items. The company offers two comprehensive plan options and 10 add-on items, such as pool coverage and roof leak protection, to customize your home protection. Choice is a good option for homeowners who want affordable home warranty coverage without sacrificing important protection.
Elite Home Warranty is worth considering if you need coverage for unique items such as sewer lines or water softeners. The company offers over 30 add-ons, including pool coverage and HVAC annual maintenance, allowing homeowners to customize their plans. Elite also provides four distinct plan options, ranging from appliance-only and system-only coverage to comprehensive protection that includes both systems and appliances.
How To Buy a Home Warranty
Before buying a home warranty plan, consider the following factors when shopping for options.
- Plan type: Most home warranty companies offer various coverage options to suit different needs. Appliance plans cover essential home appliances such as refrigerators and dishwashers. System plans include major home systems such as your heating, air conditioning, and plumbing. Combination plans include coverage for both systems and appliances.
- Costs: On average, a home warranty costs between $564–$984 per year or around $47–$82 per month. Your final pricing could vary depending on your selected plan, add-ons, and location. You’ll also pay a service call fee, which ranges from $75–$125, each time a technician visits your home to diagnose an issue. We recommend comparing quotes from at least three providers to find the best price in your area.
- Coverage limitations and exclusions: Home warranty coverage typically includes coverage caps and exclusions on each item. Certain systems or appliances may only include coverage up to a specific dollar amount per repair or replacement. In addition, pre-existing conditions, improper installation, and lack of maintenance may void coverage. Always read the fine print before purchasing a plan.
- Claims process: A company’s speed and efficiency matter when filing a claim. Once you submit a request, most providers dispatch a technician to assess the issue. Some providers aim for a 24- to 48-hour turnaround. However, not all providers offer clear time commitments, so consider this when evaluating your options.
- Reputation and customer reviews: Before selecting a provider, check customer reviews, Better Business Bureau (BBB) ratings, and complaints regarding denied claims or service delays. Some companies have better reputations for handling customer service issues and claims more efficiently than others.
FAQs About Home Warranty Coverage
What’s covered under a home warranty?
A home warranty protects major home systems and appliances like your air conditioning, electrical, refrigerators, dishwashers, washers and dryers, and ductwork. Most companies will also offer optional coverage for items like your swimming pool, hot tub, and septic system. To gain a deeper understanding of these protection plans, read our article on the fundamentals of home warranty plans.
Do home warranties cover pre-existing conditions?
In general, most home warranty companies don’t cover pre-existing conditions. However, certain providers, such as American Home Shield and First American Home Warranty, offer protection for these issues. We recommend reviewing each provider’s service contract to understand the extent of coverage and any limitations.
How much does a home warranty cost?
A home warranty costs between $564 and $984 per year for coverage. Service fees range between $75–$125 per claim. The overall price of a warranty will ultimately depend on where you live, the square footage of your home, and the type of coverage you choose.
Is a home warranty worth it?
A home warranty protects homeowners from paying expensive, out-of-pocket costs when an important system or appliance breaks down. Whether you’re a first-time homebuyer or a seasoned homeowner looking for slightly more protection on important home items, a warranty isn’t a bad idea.
Do I need a home inspection before signing up for home warranty coverage?
Most companies don’t require a home inspection before coverage kicks in, however, getting an inspection could be beneficial when it comes to filing claims and figuring out which systems and appliances are covered.
Our Rating Methodology
Our rating methodology is designed to objectively evaluate home warranty companies. We conduct in-depth research by gathering quotes, analyzing sample contracts, speaking with company representatives, and surveying homeowners nationwide. We also tested 11 top home warranty companies to learn more about sign-up processes and claim filing experiences.
Each provider is scored in six key factors on a 100-point scale. We then convert the final scores into a 5-star rating. Here’s a breakdown of our scoring categories:
- Coverage: We examine how many items a provider covers, including unique items, and if plans include competitive annual limits. Companies can lose points for having long waiting periods and depreciation policies.
- Cost: We compare pricing and service fees, favoring companies with industry-average or lower costs and no unexpected surcharges.
- Trustworthiness: Customer ratings, complaint responses, and National Home Service Contract Association (NHSCA) membership play a role in this category. Companies with strong reputations and long workmanship guarantees score higher, while those with legal issues lose points.
- Plan transparency: We analyze contract clarity and policy disclosures, rewarding providers with easy-to-understand terms.
- Customer support: We award points for companies with fast response times, multiple claim submission options, and accessible service.
- Flexibility: We evaluate plan variety, add-ons, technician selection, and cancellation policies, awarding higher scores for more homeowner-friendly options.
